Arab News, Tuesday, Apr 13, 2021 | Ramadan 1, 1442
Abu Dhabi Mubadala invested record amount in 2020, eyes aluminum IPO
Emirates:
Abu Dhabi state investor Mubadala invested a record amount in 2020 as it doubled
down on growth sectors, and is close to making a decision on the listing of
Emirates Global Aluminium, its chief executive said on Monday.
“We’ve invested more in 2020 than we have ever done in any one year prior to
that,” Khaldoon Khalifa Al-Mubarak told a virtual event organized by Bahrain’s
Investcorp.
Mubarak did not disclose the figure, but his comments signalled Mubadala’s
investments will exceed the $18.5 billion in 2019 and $19.1 billion in 2018.
He said Emirates Global Aluminium, which is owned by Mubadala and Investment
Corp. of Dubai, is well placed for an initial public offering.
“This company is now a very mature business, a very well-placed business for
growth. It’s cost base is in the lowest quartile...it’s a great business,” he
said.
A plan to list EGA was delayed in 2018. Mubarak said Mubadala paused for 6-8
weeks in March 2020, using the time to understand the ramifications of the
pandemic.
“We supercharged our monetization when it came to the sectors in the headwinds
and we kept investing in the sectors in the tailwinds, building new partnerships
and really focusing on life sciences, as an example, technology, mobility,
digital infrastructure,” he said.
Mubadala, which manages $232 billion, invested $853 million in the retail
division of India’s Reliance Industries in October after paying $1.2 billion for
a 1.85% stake in Reliance’s digital unit, Jio Platform in June.
“We have invested more in India in 2020 than the previous 19 years combined,
that gives you an indication of how serious we are about investing in India,”
Mubarak said, noting Mudabala had been underweight in terms of its exposure to
the country in the past.
He confirmed Mubadala’s team is looking at the pipelines business of Saudi
Aramco but had yet to decide whether to invest, nor had it taken a view on the
listing of Santa Clara-based semi-conductor producer Globalfoundries.
Mubarak said future risks include inflation, another pandemic, the trade rift
between the United States and China, as well as a global correction and economic
slowdown.
($1 = 3.6728 UAE dirham) (Reporting by Saeed Azhar and Alexander Cornwell;
editing by Jason Neely, Kirsten Donovan)